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In honor of Throwback Thursday and the Australian Open (sadly sans Roger and Rafa at the moment), I thought I would republish my post from February 2012:

THE AUSTRALIAN OPEN – TWO WEEKS WITH RAFA, ROGER, NOVAK, LAYTON AND JELENA

February 8, 2012

As Eli Manning declares his plans to visit Disneyland, and New Yorkers bask in the afterglow of our ticker tape parade, I am still recovering from two intense weeks that were the Australian Open. (That’s tennis for those less obsessed than I.)

Thanks to ESPN2 and my Time Warner Cable DVR, I awoke every morning for two weeks to a Christmas morning of sorts, full of 10 some hours of tennis coverage. Putting aside the incredible athleticism, the fit and attractive main characters and the fashion considerations, just the fact that I had a window into beautiful summer weather made the tournament an uplifting addiction.

But there was more to it than that. When you spend so much time observing the drama that was those two weeks, it is only natural to have thoughts that beg to be shared. Shared with someone. Friends, yes, but also, my blog. (In great part because I have not had a chance to write in a while, so this offers great inspiration.)

So, some observations. We know that psychology is important to sports and that tennis, in particular, is as much a head game as a game of skill. In fact, I had the opportunity to have dinner with Tracy Austin a few years ago at which time she acknowledged that a primary reason she won her first U.S. Open is that she was too young to know what a big deal it was.

So back to the observations. Andre Agassiz observed that tennis is like life. And like Russian dolls. Points make up games. Games make up sets. Sets make up matches. Matches make up tournaments – in the same way that seconds make up minutes, make up hours and so on. And what I find so interesting is that as hard as you fight for a particular point or game or set, when it is over, you are back to square one. A set won 6-0 is equivalent to a set won 7-6 in a grueling tiebreaker. Hence, when a match is tied 1-1, it is completely equal. Except for this. The player who won the second set is pumped, even deliriously happy as when Nadal fell to his knees after winning the fourth set of the finals. And the player who won the first set, who came out of the gate flying, is dejected, frustrated, even angry. I noticed this especially when the young 21-year-old Canadian player Raonic was playing the “old” 30-year-old Layton Hewitt. Going into the break between the second and third sets, Raonic looked distraught and Hewitt invigorated. But, from a scoreboard point of view, they were equal. That’s what they mean when they talk about “momentum.”

What else? Well, if it is not already the case, then Novak Djokovic’s girlfriend (Jelena Ristic) needs to be approached by a clothing manufacturer or designer for product placement. All the players have logos galore, but she, who seems to be on screen more than anyone other than the two players, is left to her own impeccable taste to decide how to dress. (By the way, she’s gorgeous if you were not aware.) This is a missed sponsorship opportunity.

And, how about those tennis fashions? For some reason Adidas felt compelled to subject those they sponsor to a disturbing combination of peach and coral that even men on the courts in Central Park remembered two weeks later. My nephew, who plays wheelchair tennis competitively, tells me it’s because the manufacturers want to show off bright colors at this first summer event. But I found it cruel. It took me a while, by the way, to understand why so many players were wearing the exact same dress or style. At first I thought they might be from the same Eastern European nation. Then I realized it was Adidas. I imagine they feel that by having multiple players, who may not make it very far into the tournament, wear the same outfit, they get similar air time as they would if a highly seeded player wore it for many rounds. That said, the fact that the women’s tennis has become a game of “your guess is as good as mine” makes it hard to predict who might actually have significant airtime. Even Sharapova, who made it to the finals, went down in a quite brief 6-3 6-0 match.

But let’s get back to Nadal. Nadal has become my inspiration. Yes, he’s cute and cuddly and muscular and fit and a magnificent athlete… wait, where was I? Ah, right, inspiration. As one of the commentators observed, Nadal plays every point as if it is match point. No matter how unlikely it seems that he might win – as with the, sigh, U.S. Open of last year, he will never lose hope. He will never stop fighting. If Nadal (oh, and Djokovic too) can play a 6 hour final match, then I can (in theory), run for 45 minutes on the treadmill, or hold that tortuous yoga pose until the instructor lets me (please, for G-d’s sake) move on. So, somehow, even when Nadal loses. (And, don’t get me wrong, I’m still in mourning for this year’s final), I feel somehow inspired.

To expand upon that point, I have friends who are not Nadal fans. I don’t fully get it, but it’s true. Many are Federer fans. And I can appreciate that. He’s a class act. But it does make me wonder what makes someone a Nadal fan and others a Federer fan. (Putting Novak aside for the moment.) They are, after all, different. Nadal is wearing bright swaths of color. Lime green and sporty blue – on simple (high tech) t-shirts. Federer’s shirts all have collars. (Federer has Rolex as his sponsor.) But I love Nadal. He’s PASSIONATE. And he’s physical in a warm way. When Federer first lost to him and was crying, Nadal put his arm around Federer’s neck and his head on his shoulder. (I could die!) When Nadal passed Novak on the grounds of the Ossie open, he patted his back rather than just shaking his hand. It’s these little things that appeal to me.

So, back to fashion. What’s up with the mismatched yet coordinated wristbands. One blue, one white. One black, one red. I don’t know. I can’t think of the colors, but it’s a thing. Someone ordained it. They take the colors from the tennis outfit and break them out into two wristbands. This meant, of course, that when Novak switched from his white shirt to his black shirt in the second or third set – also an interesting move – his blue wristband didn’t make sense, as it was not reflected in the shirt.

So…. what was supposed to be a quick post feels like it could go on and on – much like the 6 hour final, so I must end it somewhat arbitrarily and abruptly. I hope you’ve enjoyed my tennis musings – brought to you thanks to the coverage of ESPN2 (and the Tennis Channel) and the DVR functionality of Time Warner Cable.

American Express is a good example of a marketer that uses modeling, and mail/offer testing effectively. It also uses a wide range of channels, from mobile/geolocation to direct mail, email, social and telemarketing, and has even experimented with addressable television.

American Express uses its reserve of transactional and other data to target and space offers and to reach customers through their individually preferred channels. I personally receive and respond to offers via my mobile device through the geolocation application foursquare. These offers are timely, relevant and easy to redeem. Once I have “unlocked” a special offer, American Express applies the discount directly to my statement. This program originated as a way to drive activity for AMEX’s small business customers; however, it is equally valuable for card members. The direct application of the rebate to a card holder’s statement resulted from research that showed that members often feel uncomfortable or inconvenienced by having to show a coupon at a restaurant or other place of business.

American Express offers are tied to segmentation such as the type of card or specific activity. For example, Gold card members receive a Platinum offer every 3-4 months, a customer who shops at Petsmart might receive a $10 offer for a future purchase there, and someone who travels might receive offers related to places he or she has visited or for a traditional AMEX product set such as Sign and Travel.

My understanding is that American Express dedicates 15% of its budget to testing. This reflects the brand’s commitment to continuous learning, using controls and checks, trying new things, tweaking, and defining and tracking measures of success.

JetBlue:

JetBlue uses DR marketing more for relationship building than acquisition. They manage the relationship with their patrons in a structured and fun way that clearly reflects the brand’s personality.

JetBlue is a good example of brand that demonstrates its relevance to the customer, expresses itself in its own voice, and delivers timely and appropriate messages. In addition, the brand and the message stand out and add value to the relationship for both parties.

The JetBlue birthday email depicted here is simple, unexpected, quick and to the point. It recognizes the fact that people are likely to fly around the time of their birthday and offers a potential bonus for flying with JetBlue.

JetBlue uses social channels such as twitter for both promotion and customer service. In this twitter exchange, you can see the airline’s promotional offer: “Spread yur wings & try an exciting new destination w/ flgts from $59.” The message is short and enticing with an effective call to action and means to take action by clicking on the link. Note that the reach of this offer has been amplified by being retweeted. In addition, this exchange demonstrates how JetBlue’s social customer care presence is consistent with its brand personality. The response from the JetBlue representative to M Schackne is energetic, playful, timely and personal – showing a consistency across channels.

Target:

Target used sophisticated statistical modeling to identify mothers-to-be by mapping buying behaviors of loyalty card members to those who had signed up for baby registries – thus giving Target access to a highly profitable customer segment.

Because birth records are usually public, new parents are immediately inundated by all kinds of offers and advertisements, so the Holy Grail is to reach these parents before their child is born. Target was able to pinpoint customers who were pregnant and even estimate their due date. This allowed them to send extremely targeted offers to drive in-store traffic. Some say that this strategy of reaching new families and making them loyal Target customers was key to Target’s revenue growth of $44 billion in 2002 to $67 billion in 2010.

Target’s strategy became public due to a New York Times article that featured a story in which Target knew that a teenager was pregnant before she had told her family. This story highlights the fine line between relevant and “creepy” that direct marketers must navigate in this age of big data and personalization. DR marketing is permission based, and we must be careful not to impose upon customers’ good will and sense of comfort.

Starbucks

Starbucks uses digital, particularly mobile, channels to integrate itself into the day-to-day lives of its customers, from “home to store to home.”

Through its mobile application, Starbucks sends offers that range from value added items such as free music and applications to specific offers to try new products for free or at a discount.

Starbucks also uses this channel to provide loyalty rewards, which include free products. Other offers encourage and enable customers to serve as advocates by, for example, tweeting promotional offers to friends.

I was recently asked whether I organize my marketing thinking along a demand or marketing funnel. This question brought to mind a set of two blog posts (“Advertising Week 2011 Key Themes” and “And, uh the a ha is“) from October 2011 covering Advertising Week. I have included the relevant sections below. While I am still refining my answer to this question, this is my initial response:

On many occasions, I do organize my thinking along a demand or marketing funnel. It depends upon the specific marketing initiative or challenge. I find the marketing funnel useful when addressing macro issues such as the role of “upper funnel” awareness communication vs. “lower funnel” direct response activities – and how these should be coordinated or integrated. It is also a valuable framework for ensuring that a brand reaches its target customers at each stage of the path to purchase with the right message at the right time and using the right medium or platform.

The metaphor of a funnel in which the number of prospects or size of the consideration set becomes more focused in each phase is less relevant in today’s non-linear, iterative digital and social environment. Today’s framework is more of a decision journey loop with a consideration set that may contract and/or expand along the way and in which post-purchase communication and activities such as social sharing and an ongoing dialog are crucial.

I often use a customer journey map or customer-specific path to purchase that incorporates the way in which consumers move from one platform to another as they interact with a brand. This approach frequently includes the development of customer personas and/or the identification of moments of truth. It has its origins in the marketing funnel and is an expansion of it.

And, Uh, the A Ha Is:

The ruling on the purchase funnel is not final. Most agree publicly that the traditional funnel, e.g., awareness, consideration, intent, purchase, loyalty – or as I was taught in business school, AIDA: Awareness, Interest, Desire, Acquisition, needs to be updated. The patch to purchase is no longer a straight line. The funnel of choice seems to be the McKinsey oval, which you can view in my summary of the panel. (No mention of the Forrester “path to purchase” in the age of social engagement – see below).

The key takeaways are that:

(a) the process is iterative and circular

(b) must include advocacy

(c) many include “loyalty,” but that’s not new, that’s just “adoption.”

However, when we got to the TV panels, the upward and lower funnel nomenclature was still front & center. A disconnect?

The Funnel (aka Path to Purchase and Consumer Decision Journey) – The traditional funnel is outdated. However, much of the terminology has survived and/or been incorporated to the new, bright shiny (Mustard colored) circular tubes. There is some consensus about the fact that the process is no longer linear but more of a circular conversation. – However, the term “funnel” as well as “top” and “bottom” of funnel and stages such as awareness, consideration, acquisition were used frequently, particularly by CMOs. However… the funnel must include advocacy. (Social, social, social) And, the funnel is iterative and, well, free flow.

When I first joined pinterest, it was, as its name suggests, a virtual pin board where I would explore and share my interests and passions visually. The first passion I brought to life was tennis, starting, of course, with Rafael Nadal. My “Tennis” board was a form of visual poetry as I sought to assign just one word to each compelling or inspirational photo.

I then moved on to the creation of a “Recent Indulgences” board where I could document and share recent purchases. This was something I had been doing on Facebook for many years by way of a photo album by that name, so the jump to pinterest was quite natural. And the fact that I could simultaneously share these images with Facebook and Twitter made this an easy transition and enhancement.

More recently, I found myself in the position of shopping for a new desk. As I surfed the Internet and came across items that seemed to fit my need and that I found visually appealing, I found that uploading these images to pinterest was a wonderful way to keep track of the items I discovered. In fact, by creating a “Desk” pinboard, I was able to see the commonalities across the pieces of furniture I pinned and get a better sense of what I was looking for. It also prompted me to expand my search by exploring a new direction. This time around, I did not need to use the handy “pin it” button I had installed a few years back as I discovered that virtually every eRetailer had a pinterest widget incorporated into their website. Clearly pinterest has become a table stakes component of online retailing.

Now that I had this nice compilation of desks, I was able to share my ideas with friends and get their input. In fact, one friend commented that what I really seemed to need was a new desk chair for the table I had been using rather than a new desk, and so my pin board became about “Desks and Chairs.”

Another element that was really wonderful was that when I pinned an item that someone else had also uploaded to pinterest, I was given an option to click through to that person’s pin board, which invariably provided new inspiration and led me to new websites and retailers featured in the pin board I visited.

I’ve now expanded my board from desks to “Home Furnishings” as I explore dresser options as well. So pinterest has continued to be a form of visual exploration and expression. But it has now become a crucial part of my online shopping experience.

I recently overheard someone say that pinterest is not about what people have but about what they wish they had – as if this were some kind of dark secret. I recalled that when Myspace first came into being it gave teenagers an opportunity to portray themselves however they wanted without being limited by the size, look or location of their actual home. In this case, the aspirational nature of pinterest is open, exciting and powerful – just like the pin boards of our youth.

On at least three occasions, I have written posts that incorporated a summary of notable stats about mobile apps and the mobile space in general to set the scene for a topical discussion. But the facts change so fast that I was continuously updating the posts, and the posts had a tendency to grow and grow at the rate of foursquare subscribers. (See here for 2010 post) So, I’m starting afresh and focusing specifically on notable mobile facts starting with these:

A mobile marketing strategy is a must-have for retailers – and, I would venture, anyone that sells products to consumers. In fact, with today’s predictive marketing capabilities, retailers and marketers can target purchase intenders at the time and place of potential purchase.

26% of American teens of driving age say they have texted while driving, and 48% of all teens ages 12 to 17 say they’ve been a passenger while a driver has texted behind the wheel (September 2009 survey; see Teens and Distracted Driving)

This is the year of the Tablet:

About 68.7 million tablets shipped worldwide in 2011, according to IDC, which forecasts 106.1 million units to ship this year (April 17, 2012)

Smart Phones have reached the tipping point:

86% of mobile internet users are using their devices while watching TV. Are people fast forwarding through your commercials or engaging with their smart phones while they’re on? If so, has your commercial motivated them to do something related to your brand or prompted them to do something else to pass the time?

Android Apps Reach 400,000

In December 2011, Google celebrated their ten billionth Android app download, and now new research from mobile app analytics firm Distimo reports that there are 400,000 apps available in the Android Market. (Scroll all the way down for a post about Android apps reaching 90,000 in July 2010!)

Free apps make up a considerable portion of that 400,000, and Distimo’s research indicates that the ratio of free to paid apps has jumped from 60% to 68% over the last eight months. Distimo pegs the prevalence of free apps on the current popularity of the freemium app economy, which also isn’t much of a surprise considering the potential payouts inherent to the model.

While mobile devices are expected to surpass laptops and desktops for accessing the Internet, they account for only 13% of web traffic today (still not shabby). This is due in part to the lack of mobile optimized websites, a situation that is changing. Within the 13%, more than 80% of comes from iPhone and iPads:

40% of Mobile Phones Are Smart Phones (Source: Nielsen)

Becoming the Primary Means for Accessing the Internet

Mobile devices and connected TVs are expected to overtake personal laptops within the next year as a means for accessing the Internet. I hope your website is optimized for mobile and mobile search…

“I Love My MacBerry” – Literally

A study using MRI scans showed evidence of not only addiction to iPhones but also Love. (I admit it. I’m hopelessly hooked. I’m even willing to put up with the fact that my AT&T iPhone often hangs up on me. Is that a sign of codependency?)

iPads, iPhones, iPods and More – How Many Were Sold in Apple’s 4Q 2011

The Company sold 17.07 million iPhones in the quarter, representing 21 percent unit growth over the year-ago quarter.

Apple sold 11.12 million iPads during the quarter, a 166 percent unit increase over the year-ago quarter. (That’s 20.37 million iPads in Apple’s fiscal 2011 2H – ALONE, which does not include what will likely be a huge holiday purchase season for the device, and annualizes to 44.5 million per year)

The Company sold 4.89 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter.

Apple sold 6.62 million iPods, a 27 percent unit decline from the year-ago quarter.

iPads, iPhones, iPods and More – How Many Were Sold in Apple’s 3Q 2011

9.25 million iPads were sold during Apple’s 3rd quarter, 2011, up 183 % vs. year-ago (That would annualize to 37 million per year.)

20.34 million iPhones were sold, up 142 percent vs. year ago (That’s a pretty nice stat – and impressive given growth of the Android. A testament to the dramatic growth of smartphone in general)

(That means that nearly 30 million iPads and iPhones were sold this quarter.)

3.95 million Macs, up 14 percent vs. year-ago (iPads cannibalizing Macs. I would say, “yup.” Especially laptops – by all manufacturers – and, perhaps MacBook Airs. I think the Christmas season is going to blow the current iPad number out of the water)

7.54 million iPods, a 20 percent unit decline from year-ago. (I saw a young man on the subway today using the iPhone as an iPod with headphones – ironic as he had to hold the relatively large device.)

Observations, Implications and Hypotheses:

Nearly 30 million iPhones and iPads were sold. Compare that to less than 4 million Macs (laptops and desktops, up only 14 percent vs. year-ago) – and less than 8 million iPods, DOWN from year ago. iPads and iPhones seem to be cannibalizing laptop, desktop and iPod sales.

More than twice as many iPads sold as Macs. iPads are definitely cannibalizing laptop sales

iPad sales equivalent to 1/2 iPhone sales

In sum, iPads are HOT. They’re starting to reach a tipping point from: it’s cool to have one to it’s not cool not to have one (I hope that made sense, i.e., it’s becoming embarrassing to not have one – I predict I’ll give into peer pressure within the year at most)

Quite a large increase in iPhone sales given growth of Android penetration; hence, it seems that the overall pie is heating up

Source: Apple 3Q earnings report

Being Mobile at Home

Don’t mistake mobile device usage with being mobile… A good chunk of time spent with smart phones, PDAs, iPads, eReaders and other such devices is spent at home. Think about it. Picture your well-wired friend – or maybe it’s you – with a laptop before you, a smartphone in your hand, an iPad on the sofa beside you, and an Internet connected TV shimmering its HD (or 3D) images from across the room. In fact, the latest data from ComScore shows that tablets have the highest share of traffic for digital news consumption during evenings, beating out computers (as well as smart phones) in at-home news consumption. (Source: Moxie Pulse) Moreover, GlobalWebIndex data suggests that, globally, half of those who access the mobile web do so from home or work, rather than while traveling or “roaming,” or while in a public place.

91 MM Americans Use Mobile Search

Overall, more than 91 million US consumers use the Internet through a mobile device at least monthly, and this increase in on-the-go web usage goes hand in hand with more search activity, particularly for local content. 20% of mobile search users do so almost every day.

Meanwhile, the debate between App and Wap (ok, browser) continues, with mobile search engine usage currently exceeding search via apps by 70% as of August 2011 – According to Yahoo! and Ipsos, via eMarketer.

Facts from Jimmy Wales at OMMA Global (September 26, 2011)

One out of every two Americans owns a smartphone [whoah, that’s DOUBLE the 25% shown for Q2 2010 if you scroll down]

15.1 million tablets shipped worldwide (I have seen other numbers for this metric that I will add to this post… Ok, eMarketer is estimating 24MM for 2011 and 46MM in 2012)

Android is #1 U.S. Mobile Operating System – Q2 2011

As of June 2011, the Android operating system accounted for 39% of the total U.S. mobile market, making it the #1 mobile operating system in the country.

Apple maintains its share of 28% share, while Blackberry OS from RIM (Research in Motion) has fallen from market leadership (nearly 40% in 2009 – scroll down) to third position with only 20% market share.

These three operating systems (representing 87% of the market) are followed by Windows Mobile/WP7 (9%), Palm/HP Web OS (2%), and Nokia’s Symbian OS (2%)

Apple is the leading handset maker in the United States whilst Android is the top mobile operating system. (Nielsen)

Apple overtook Nokia to become the world’s leading smartphone vendor in July (Nielsen research and IDC figures)

According to a report by the NPD Group, the Android operating system accounted for 52% of the smartphones sold in the second quarter of 2011, up from 36 percent sold in Q1 2011 according to previous data by Gartner.

If you have not already invited Timehop Abe into your life, I highly recommend it. Timehop Abe sends me an email each morning recapping my social activity from one year before. Personally, I find this to be extraordinarily interesting. It puts things in perspective to be reminded what I was thinking about and experiencing a year before. Do I feel the same way today? Are my observations still relevant? Was I doing something particularly fun or interesting? How has my life progressed? Am I about to attend the US Open exactly one year from the last time I did so?

This morning I woke up to a quite lengthy recap of my Twitter posts from OMMA Global, which took place September 26th, 2012 – an interesting reminder on the eve of Advertising Week 2012, which includes OMMA Global. I imagine OMMA schedules during that week in order to take advantage of the energy and the presence of those from out of town. Unfortunately, for me, I prefer to sample the smorgasbord of Ad Week panels throughout the city vs. dedicating a day to OMMA Global, which is a shame.

In any case, as I reviewed my entries, I had two observations: (1) Most, if not all, are completely relevant today. (2) Some are more relevant today because the topics or initiatives were just being born a year ago and have become mainstream, such as AMEX’s foursquare program, which has now branched out into other social media such as Twitter. (I see that I quoted Zuckerberg several times. Was he there?Have I seen the great Founder in person? I don’t recall – though I could certainly look this up…)

Hence, since the majority of my observations are still of interest, I thought I would start my day by sharing them with you. What do you think? Are they still relevant and thought provoking? I have added some of my own comments.

#1 This was the beginning of an ongoing – friendly – battle for mayorship of my apartment building with my doorman, several years since I created the venue. I don’t believe that anyone else in the building has ever signed in.

#3 “Native Monetization.” I don’t recall hearing this phrase since the conference. However, a quick Google search does reveal some discussion:

“Native advertising is a new form of inventory that seamlessly integrates promoted content from brand advertisers into the fabric of a site itself. Native advertising inventory is content that’s part of the site experience rather than ads that interrupt users, such as pre-roll video ads or boxes, buttons, and banners on the corners of pages. Facebook’s Sponsored Stories are one of the largest bets on native advertising in the ad industry – a bet that’s consistent with the ad strategies of the dominant social media platforms such as Twitter, YouTube, StumbleUpon and the coming ad products from the next wave of internet elite like Tumblr and Spotify” – Dan Greenberg, TechCrunch

I hope this does not include those incredibly annoying and interruptive “Pages You May Like” posts on my Facebook news feed.

I suspect this varies by company, e.g., a customer service/complaint/service oriented company such as Time Warner Cable, Comcast, Bank of America, etc., might rank customer support higher. As Ted Schadler wrote in “Empowered,” customer service has become a form of marketing. Think Zappos and Virgin America.

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Karen Levine

Karen is a strategy and marketing consultant specializing in media, entertainment and advertising. She has helped multinational corporations diversify into new platforms and digital ventures become more strategic and consumer-centric. Karen has been retained by a range of clients to perform proof-of-concept, develop business plans and strategic roadmaps, and define, quantify and execute growth strategies. Her clients include Bank of America, eBay, General Mills, McCann Worldgroup, Publicis Modem, Showtime and Time Inc. She has held full time positions with Booz Allen, Unilever, Deloitte, NBC and Hachette.
Karen recently joined Capgemini Consulting as a Managing Consultant in the firm's Marketing, Sales and Service practice.

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